Pick of the Day: EUR/USD – Trade Closed

As hoped, EUR/USD rallied a bit higher to the 38% Fibonacci retracement level, and after hanging out just a bit above 1.56, the pair dropped as the US Dollar rallied on comments from Fed Chairman Bernanke.

Our trade hit full profit target.

1st Half: +70 pips
2nd Half: +140 pipsTotal: +1.5% gain

Trade Idea: 2008-06-02 23:24

We have a nice chart setup on EUR/USD which may give us an opportunity for a short term trade.

It looks like pair is in range mode after the US Dollar made a strong move against the Euro, moving from a high of just above 1.58 to a low just above 1.5450. Without any major news for both the Greenback or Euro tomorrow, I feel that if the market makes its way back up to 1.5600, we may see sellers waiting to hold that 38% Fibonacci retracement area down. Stochastics are just above neutral, so if there is further retracement to go, it hasn’t run out of steam yet.

Short EUR/USD at 1.5600, stop at 1.5670, pt1 at 1.5530, pt2 at 1.5460

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Stay tuned for updates, good luck and good trading!

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About Pipcrawler

Every day, I try to find what I believe is the best looking short term currency trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology behind price movements in the foreign exchange markets, so you can learn to analyze your own currency charts and trade on your very own. To help you understand my trading approach, please read about my trading framework.

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